Summary: China generates tens of millions of tons of used clothing each year, yet the recycling rate remains low. A complete chain has formed, running from collection points and sorting plants to exports to Africa and Southeast Asia. Collectors buy by weight at a few cents to just over one yuan per kilo, and can sell to sorting plants for two to three yuan. Some operators earn 200,000 to 300,000 yuan a year; after sorting, good-condition garments fetch a few cents to a few yuan per piece for export, while poor-condition ones are processed into industrial rags, insulation materials, or recycled fibers.

Key Points

  • The used clothing supply chain has a clear division of labor: good-condition items are baled and exported to Africa and Southeast Asia, while poor-condition ones are shredded into industrial rags, insulation materials, and recycled fibers
  • Prices rise at each stage: collection-end purchase prices are a few cents to just over one yuan per kilo, and selling to sorting plants can reach two to three yuan
  • Beginners should start at the collection end, partnering with residential communities to place collection bins or offer door-to-door pickup, earning the margin from selling to sorting plants

Where do those old clothes in your wardrobe that you no longer wear end up? Most people's answer is the trash can, or the green collection bin downstairs. But to some, this is a profitable business.

From Collection to Export, Multiple Links in the Chain Generate Returns

After used clothing is collected, it is first sorted: items in relatively good condition are baled and exported to places like Africa and Southeast Asia, selling for anywhere from a few cents to a few yuan per piece; those in poorer condition are shredded and processed into industrial rags, insulation materials, or recycled fibers. At every link in the same chain, there is room for profit. China generates tens of millions of tons of used clothing each year, while the recycling rate has long remained at a low level, and the potential market is considered considerable. The export direction especially stands out: many African countries have strong demand for second-hand clothing, and used clothes discarded in China can be turned into cash once shipped there, attracting more and more people into the used clothing collection and export business.

Profits Come from Extremely Low Sourcing Costs and Margins at Every Layer

The underlying logic of this business is that the goods are almost "free for the taking." The collection end buys by weight, generally at a few cents to just over one yuan per kilo; when reselling to sorting plants, a kilo can fetch two to three yuan. A well-run collection point can take in several tons a day, with considerable monthly turnover. According to the article, among people doing used clothing recycling, some can earn 200,000 to 300,000 yuan a year, better than working for a wage.

Advice for Entering the Industry: Start at the Collection End, Don't Jump Straight into Sorting and Export

For ordinary people with limited resources, the safer entry point is the collection end—partnering with residential compounds and communities to place collection bins, or offering direct door-to-door pickup, then selling the goods to sorting plants to earn the margin. Once the channels are gradually figured out, then consider extending into sorting and export. The article explicitly warns that starting directly with sorting and export is an asset-heavy model, and the industry has deep waters, making losses easy. Several issues also need attention: there must be stable sales channels, otherwise the collected goods cannot be sold; you need to understand grading and market conditions, since the purchase price gap between good and inferior goods is obvious; and you must operate in compliance, avoiding taking in goods of unknown origin.

The reference value for the industry lies in this: used clothing recycling is a typical layered business with a low entry threshold and a high-threshold deep-water zone. The primary links win through channels and volume, while the sorting and export links depend on capital and judgment of market conditions, and participants need to choose their entry level according to their own circumstances.

Source: The old clothes you throw away—someone earns hundreds of thousands a year from them · Originally published on 2026-09-20